Effective June 11, 2026, Washington’s newly enacted House Bill 2479significantly increases the Department of Labor & Industries’ (“L&I”) authority to investigate wage complaints.

Penalty Caps for Willful Violations Removed

Previously, civil penalties for willful wage violations were capped at $20,000. However, that cap has now been eliminated. L&I may assess penalties up to the full amount of unpaid wages owed, plus interest, subject to a forthcoming rule-based penalty matrix.

The new law also establishes a $1,500 minimum penalty for willful wage violations. With the removal of the $20,000 cap, L&I could potentially impose a $1,500 penalty for each affected employee. This creates substantial exposure in cases involving multiple-employees, even when the allegedly unpaid wage amounts are relatively small.

Resolution of Complaints is a Willfulness Factor

The law also imposes a willfulness penalty on any employer that resolved a wage complaint more than once in the preceding 12 months or three times in the preceding 24 months. This change effectively lowers the practical threshold for establishing willfulness and increases the risk for employers who wish to avoid the distraction and risk of litigation by resolving a complaint. This also penalizes employers who promptly pay wages owed to cure an underpayment or address a complaint.

L&I May Expand Investigations Beyond the Original Complaint

H.B. 2479 also authorizes L&I to expand investigations beyond the initial complaint whenever it identifies common questions of law or fact, without the need for additional employee complaints. As a result, a single wage claim may trigger a broader, company-wide investigation, particularly in cases where uniform pay practices or policies are in place.

Takeaways for Employers

  • Ensuring consistent wage compliance and maintaining detailed, accurate records is more important than ever.
  • Penalty exposure is now uncapped for willful wage violations.
  • Individual employee complaints may escalate into broader investigations.
  • Proactive wage and hour compliance is critical to mitigating risk.

Employers should consider conducting privileged wage audits, reviewing prior wage complaints or settlements, and reinforcing Washington-specific compliance practices before the law takes effect.